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Picture Courtesy: THE HINDU
The increasing dominance of a single political party at the Centre has fueled concerns among various state governments regarding centralisation within Indian federalism.
It is a system of governance where power is constitutionally divided between a central government and regional governments (states or provinces), with each operating independently in its defined sphere.
India is described as "quasi-federal" due to its blend of federal features with a strong unitary bias, where the Centre holds comparatively more powers.
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Single-Party Hegemony: A phenomenon where one political party consistently holds power over an extended period within a democratic system, influencing policy-making and electoral dynamics. |
Early Congress Dominance (1952-1967): The Indian National Congress (INC) achieved success in the first three general elections, winning comfortable majorities (e.g., 364 out of 489 seats in 1951-52).
Decline and Coalition Era (1967-1989/2014): Post-1967 elections, Congress dominance declined, losing majorities in several states and a reduced majority in Lok Sabha.
Return of Single-Party Led Dominance (Post-2014): The Bharatiya Janata Party (BJP) emerged as a dominant force, winning majorities in 2014 (282 seats) and 2019 (303 seats), marking a new phase of single-party led dominance.
Single-party control at the Centre is intensifying debate over federal structure. States cite concerns over financial autonomy, the Governor's role, and central agency overreach, arguing the constitutional balance is being compromised.
Fiscal Centralisation
Erosion of the Divisible Pool: The Centre's reliance on cesses and surcharges (which are not shared with states) reduces the revenue transferred to states.
Impact of the GST Regime: While unifying the market, GST limited states' independent taxing authority.
Limitations from Centrally Sponsored Schemes (CSS): Rigid funding formulas of CSS restrict states' autonomy, as states view these as violations on subjects constitutionally assigned to them, preventing local development initiatives.
Political & Administrative Centralisation
Controversial Role of the Governor: The Governor's office is often disputed, with Governors in opposition-ruled states like Tamil Nadu and Punjab accused of delaying assent to bills, acting as agents of the Centre.
Judicial Intervention on Governor's Powers: The Supreme Court, in multiple judgments in 2023 and 2025, has clarified the Governor's role. It ruled that Governors cannot sit on bills indefinitely and must engage constructively with the elected government.
Use of Central Agencies: States often allege that central agencies like the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) are used to target political opponents.
Legislative Overreach on State Subjects: The Centre has been accused of legislating on subjects in the State List.
The Judiciary as the Guardian of Federalism
Kesavananda Bharati vs State of Kerala (1973): Established the 'basic structure doctrine', which holds that certain fundamental features of the Constitution cannot be amended by Parliament. Federalism was identified as one of these fundamental features.
S.R. Bommai vs Union of India (1994): The Supreme Court reiterated that federalism is part of the basic structure and stated that the arbitrary use of President's Rule (Article 356) would be subject to judicial review.
Institutional Mechanisms for Cooperation
Finance Commission (FC): As a constitutional body, it ensures transfer of resources to states. The 15th FC recommended a 41% share of the divisible pool of taxes for states for the 2021-26 period. This provides states with substantial untied funds.
NITI Aayog & Cooperative Federalism: NITI Aayog provides a platform for the Centre and states to collaborate on national policies, promoting a spirit of 'Team India'.
Competitive Federalism: The Centre encourages healthy competition among states through performance-based rankings like the SDG India Index.
Strengthening Fiscal Federalism
Greater Financial Autonomy for States: Increase states' own revenue sources and reduce their dependence on central grants.
Fairer Devolution Formulas: Ensure Finance Commissions adopt transparent and equitable criteria that incentivize states for good governance and population control without penalizing them.
Empowering Local Self-Governments: Devolution of powers and finances to Panchayati Raj Institutions and Urban Local Bodies to strengthen grassroots democracy and service delivery.
Reforms in the Office of the Governor
Transparent Appointment Process: Involve state chief ministers in the appointment of Governors to enhance trust and neutrality (Sarkaria Commission recommendations).
Clear Code of Conduct: Establish a clear code of conduct and guidelines for Governors to ensure they act as constitutional heads and not as political agents.
Limit Discretionary Powers: Strictly adhere to the constitutional provisions and judicial pronouncements limiting discretionary powers.
Promoting Genuine Cooperative and Competitive Federalism
NITI Aayog's Role: Enhance NITI Aayog's capacity as a true forum for policy dialogue and collaborative action between Centre and States.
Respect for State Autonomy: The Centre should consult states on subjects on the Concurrent List and avoid imposing uniform policies where diverse approaches are beneficial.
Inter-State Council: Revitalize and utilize the Inter-State Council more effectively for resolving disputes and coordinating policies.
Respect for Constitutional Boundaries: Both Centre and States must respect their constitutional spheres of activity, promoting a spirit of mutual respect and dialogue crucial for a healthy federal democracy.
Conclusion
Despite centralizing pressures from the dominant party, Indian federalism remains resilient due to assertive states, judicial action, and constitutional bodies, necessitating a commitment to cooperation and mutual respect for its continued success.
Source: THE HINDU
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PRACTICE QUESTION Q. Is the 'one nation, one policy' approach a step towards greater administrative efficiency or an encroachment on the legislative and executive domains of the states? Discuss. 250 words |
Federalism is a system of government in which power is constitutionally divided between a central (national) government and constituent regional entities, such as states or provinces. Both levels of government operate with a degree of autonomy in their own distinct spheres of jurisdiction, as specified in a supreme written constitution.
The revenue collected by the Centre through cesses and surcharges is not part of the divisible pool of taxes that is shared with the states as per the Finance Commission's recommendations. An increase in these levies means the Centre retains a larger share of total tax revenue, reducing the funds available for devolution to states and undermining their fiscal autonomy.
NITI Aayog promotes "cooperative federalism" by acting as a platform for the Centre and states to collaborate on policy-making. It also encourages "competitive federalism" by releasing various indices and rankings (e.g., Ease of Doing Business) that spur healthy competition among states to improve governance and development outcomes.
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